GSR Update: Church's Sells

ATLANTA- AFC Enterprises will still sell fried chicken and biscuits, but only through its Popeyes Chicken & Biscuits brand. The local franchisor and operator has completed the sale of its Church’s Chicken brand to an affiliate of Crescent Capital Investments Inc., an Atlanta-based private equity firm.

AFC Enterprises announced last month that it planned to sell Church’s, which was founded in 1952 in San Antonio, TX. The company, which was formerly known asAmerica’s Favorite Chicken Co., sold Church’s to focus on the Popeye’s brand. It had owned since 1992.

Currently, there are more than 1,500 Church’s locations across the globe including 283 company-owned units and 953 franchises in the United States and an additional 300 restaurants in 15 countries. Church’s netted $900 million in sales last year.

Several real estate and restaurant facilities were excluded from the Crescent Capital acquisition and were sold to Church’s franchisees for a total of $3.7 million. AFC Enterprises will record net proceeds, after tax considerations, of $275 million for the sale. SunTrust Bank and Drawbridge Special Opportunities Fund LP funded the deal. Crescent owns other retail ventures such as Caribou Coffee Co. and women’s clothing chain Loehmann’s Holdings.